• Moneycorp currency Transfers
  • Page 3 of 3 FirstFirst 123
    Results 21 to 22 of 22
    1. #21

      Junior Member
      Join Date
      Aug 2008
      6 times


      Quote Originally Posted by Andrew Williams View Post
      Hey Danlee

      yer, that's pretty much the gist of it. Offsetting losses is a very common strategy used by lots of property investors, known as negative gearing. They would generally use the tax rebate to then clear any bad debt as it were, (ie. debt that is not tax deductible, their personal home loan for example).

      P.s you must be a permanent resident to be able to claim a tax deduction against the losses, it will not apply if you are on a temp visa.


      I'm a Citizen returning home after 7 1/2yrs abroad and will be a resident for tax purposes in Oz so all should be cool if I have to go that route

    2. #22

      Join Date
      Jun 2008
      Adelaide North Eastern suburbs
      10 times
      I would like to draw the attention of anyone reading this thread to the following forum/website;


      It's a bit dated, but does talk about the issue of remortgaging a UK home when it is to be rented out, and using that money to buy another home to live in, as well as some of the tax implications. I doubt that anything has changed tax wise since this debate occurred.

      My point is, beware of the risks and tax implications before embarking on this route:-

      As I understand it, the rent you receive is fully taxable income. It is only the interest on your mortgage which is deductable. i.e.
      - principal repayments are not deductable
      - interest on an equity release loan designed to raise cash for a deposit on a home either in UK or OZ, may not be deductable.
      - there are of course other tax benefits/deductions for maintenance and other expenses, but:

      The UK rules appear to be similar to OZ in relation to this issue.

      I recommend you speak to a professional tax adviser if you are in any doubt and be certain of the true "cashflow" implications. I'd hate to hear of anyone getting hit with a massive tax bill they were not expecting.

      In particular, do the numbers to check and see if you may be better to sell, and bring your equity tax free (even if less than you might have hoped) to end up with a smaller home loan in OZ as compared to having a small? original loan on your UK property that is tax deductable + an equity release loan that is not + the loan on the new OZ property.

      Note: I do not offer UK tax advice (or OZ tax advice for that matter!)

      If you do the numbers and you can still afford to keep the UK property - great. Best wishes all.


    Page 3 of 3 FirstFirst 123
    Copyright 2006 - 2015 Australia Migration Forums